Arjuna (Fictional Character):What details are to be given in GSTR-9C?
Krishna (Fictional Character): Arjuna, GSTR-9C can be divided in two parts namely Part A and Part B. In Part A reconciliation of outward supplies and ITC as per audited Annual Financial Statement with details of Annual Return is to be given. Part B deals with certification of GST Audit Report.
Arjuna: Krishna, how are details of outward supplies to be reported in GSTR-9C?
Krishna: Arjuna, The details of outward supplies is to be provided in from Table 5 to Table 11. In Table 5 & 7 details of outward supplies is to be given. Rate-wise details of tax liability is to be given in Table 9 and additional amount payable is to be shown in Table 11. Table 6, 8 and 10 deals with providing reasons for unreconciled supplies and taxes.
Arjuna: Krishna, What are the details to be provided in Table 5 and Table 7?
Krishna: Arjuna, in Table 5, reconciliation of gross turnover is to be given. The details to be given are as follows:
- GSTIN wise turnover of FY 2017-18as per audited financial statement is to be mentioned (in 5A).
- Unbilled revenue recorded on the basis of accrual system of accounting in the previous FY and billed in current FY shall be declared (in 5B).
- Advance received during F.Y 2017-18 on which GST is paid but not recognized as revenue in financial statement (in 5C).
- Aggregate value of deemed supplies under Schedule I of the CGST Act, 2017 shall be declared(in 5D as import of service, gifts, etc).
- Trade discount accounted in books but not eligible for deduction is to be reflected in Table 5F. While in Table 5G, turnover for April 2017 to June 2017 shall be declared.
- Credit note not permissible is to be reported in Table 5J. Forex gain/loss is to be shown in Table 5N.
- Any difference between the turnover in GSTR-9 and in the audited Annual Financial Statement due to other reasons shall be declared (in 5O). Example: Sale of Capital/Fixed Assets
- The details of nil-rated, zero-rated, exempted , non-GST supplies, etc. are to be provided in Table 7, so as to derive taxable turnover. The taxable turnover derived above should be compared with taxable turnover as declared in annual returns. The difference of unreconciled turnover, if any is to be shown in Table 8 along with reasons.
Arjuna: Krishna, What lesson the taxpayer should take from this?
Krishna: Arjuna, This shall be the first audit report since the implementation of GST. So, the taxpayer as well as the auditors should correctly report the transactions. The Auditor has crucial role to play being the first GST Audit.